Syrah Resources has announced a Memorandum of Understanding (MoU) with Solar Century Africa Ltd to progress a solar and battery storage hybrid power system to work in conjunction with the existing diesel generation power plant at its Balama graphite mine in Mozambique.

The solar and battery storage system aims to reduce CO2 emissions and operating costs at the operation.

Solar Century and Syrah have undertaken technical design and pricing analysis through 2020 for several solar and battery options at Balama, from which Syrah has chosen its preferred solution of 11.2 MW solar with an 8.5 MW battery, subject to final design. The solar and battery installation will work in conjunction with the existing 15 MW diesel generation power plant at Balama, which the company said was chosen as a low-risk power generation option for the initial establishment of operations at Balama.

Syrah Managing Director and CEO, Shaun Verner, said: “Progression of a large-scale solar and battery installation will reduce the operating cost base at Balama and further strengthen the ESG credentials of Balama’s natural graphite supply and the future supply from our vertically integrated battery anode material project in Vidalia, USA.”

The MoU establishes the terms and conditions under which Syrah and Solar Century will continue with the development of the design, funding, construction and operation of a solar and battery installation under a build, own, operate and transfer arrangement.